The VAT base has expanded sharply following a special nationwide registration drive in December 2025, as the National Board of Revenue (NBR) brought more than 131,000 new entities under the value-added tax (VAT) system.
The campaign, timed with VAT Day and VAT Week, exceeded official targets and underscored the interim government's push to strengthen domestic revenue mobilisation.
Officials say the results reflect a combination of intensified field activity, legal reforms and growing reliance on digital tools to ease compliance.
With VAT already the largest source of government revenue, the NBR believes further expansion of the tax net will be critical to boosting fiscal capacity and formalising the economy.
The drive was organised to mark VAT Day on December 10 and VAT Week from December 10 to 15, with this year's theme: "Register on time, pay VAT correctly."
As part of the campaign, the NBR set a target to identify and bring 100,000 unregistered businesses under VAT registration between December 10 and December 31, 2025.
According to an NBR press release issued on Friday, all 12 VAT commissionerates conducted surveys and registration activities every day, including holidays, exceeding the initial target by a significant margin.
Before the interim government assumed office, the number of VAT-registered entities in the country stood at 516,000. Following the latest campaign, the figure has risen to 775,000, reflecting a substantial expansion of the VAT base.
The NBR noted that VAT remains the single largest source of government revenue, accounting for 38 per cent of total revenue collection in the last fiscal year. Officials believe that further broadening VAT coverage could significantly enhance overall revenue intake.
To this end, the government has amended the VAT law, lowering the mandatory VAT registration threshold to Tk 5.0 million in annual turnover from the previous Tk 30 million, thereby bringing a larger number of businesses into the formal tax system.
The revenue authority has also taken steps to simplify compliance through digitalisation. Businesses can now register for VAT online, deposit collected VAT directly into the government treasury, and submit VAT returns electronically from home using the eVAT system.
In addition, an automated VAT refund mechanism has been introduced to credit excess VAT payments directly to taxpayers' bank accounts.
The NBR said it is also working on simplified VAT return formats for small businesses to reduce compliance burdens.
Reaffirming its commitment to building a self-reliant and prosperous Bangladesh, the NBR sought active cooperation from consumers, traders, industrialists and the media to successfully implement an efficient, technology-driven VAT system.
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